Number of products on mortgage market drops 31%

A total of 10,097 mortgage products were available on the market last week, new figures from Mortgage Brain revealed, reflecting a 31.2% reduction from the nine-week average to 16 March.

The mortgage technology expert suggested the drop, made up of 4,577 mortgage products, was a result of lenders reducing, amending or removing their products in response to the ongoing Covid-19 crisis.

Mortgage Brain also revealed it had recorded a further 31% increase in lenders changing their products last week, with 214 more changes reported compared to the previous week. Against the three-week average, the mortgage expert suggested the latest figure represented a 76% increase.
 
Furthermore, Mortgage Brain saw another reduction in the number of ESIS produced from its mortgage sourcing systems, of 15%, though added that the rate of reduction was reducing. Compared to the average over the nine weeks to 15 March, Mortgage Brain reported this reduction had hit 36%.
 
Mortgage Brain CEO, Mark Lofthouse, commented: “The level of changes we’re seeing in the market due to the impact of Covid-19 is unparalleled. The increase in product changes and reduction in ESIS continues, and has now been accompanied by a huge reduction in the products available from mainstream lenders.

“The rate of change is reducing and over the next few weeks I expect it to settle down. As the impact of Covid-19 lessens, I believe that the market will then slowly move to its new, post-pandemic normal, but this could take some considerable time.”

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